A conventional fluid dispensing nozzle comprises a nozzle body having a fluid inlet port adapted to communicate with a source of pressurized fluid and having a spout body with a discharge end for dispensing fluid. Such a fluid dispensing nozzle will typically include a manually activated valve with a lever, wherein the manually activated valve is operable to control the flow of liquid from the spout. After the fluid delivery has been halted, however, fluid remaining within the spout may leak or drip from the spout. Such leakage or drippage is undesirable, and in certain applications, such as with delivery of fuel, may violate environmental or other regulations. Consequently, a nozzle for dispensing fluid that reduces or eliminates leakage or drippage is desired.